Lack of confidence in banks spells success for building societies

Recently released figures have shown that whilst consumers have been losing confidence in banks, and banks have been losing customers hand over fist, the UK’s building societies have emerged as winners in the current financial climate. Read more

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The ‘bulk’ of mortgage lending will be re-mortgaging

With fewer people applying for mortgages for new homes, an expert has predicted that the “bulk” of this year’s mortgage lending will be in the re-mortgaging area. Read more

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‘Danger thresholds’ show borrowers most at risk

An industry expert has highlighted the fact that many people falling outside “defined thresholds” could be adversely affected by credit crunch.

Fool.co.uk urges mortgage borrowers to recognise the risks they could face from the wider impact of global credit problems by taking guidance from the Bank of England’s Financial Stability report.

It states that those with repayments of over 55 per cent of their total household income are most at risk, standing outside the defined thresholds.

David Kuo, head of personal finance at Fool.co.uk, advised: “Consumers should draw up a Statement of Affairs immediately to get a useful snapshot of their finances. The snapshot will tell, at a glance, whether you fall into one of the ‘at risk’ categories.

“Failing to draw up a Statement of Affairs in the current difficult financial climate is tantamount to driving a car without shock absorbers.”

The Financial Stability report speaks of a “tightening” in the money markets, pointing to the need for more focus on liquidity management and better stress testing among other things.

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Brits hide billions in the home

Millions of Brits are storing billions of pounds in their homes and missing out on the benefits of banking.

That is according to Virgin Money, which says we have a combined £3.5 billion worth of cash stashed away.

The firm has labelled it the ‘biscuit tin bank’ and says that we should all take that money and put it into a bank account as quickly as possible.

With the money just sitting in our homes, Virgin points out that we are missing out on interest which would be earned if it was in a bank account.

The £3.5 billion would earn a combined total of £174 million in interest every year if it was in an account and, based on future interest rates, our cash is set to lose £200 million in spending power by 2010.

Virgin discovered that 15 per cent of Brits have up to £1,000 in their home, while two per cent have around £5,000.

It may seem crazy to keep this amount of cash in the house but apparently we have our reasons.

Despite the massive risks associated, such as theft, six per cent say they keep the money in the house to hide it from their partner, four per cent do not trust banks and one per cent want to keep it tax-free.

Tags: Virgin, total, The, future interest rates, trust banks

Making Sure You Get The Cheapest Pet Insurance Available

With recent changes in veterinary treatment and technology, it is now very possible to incur veterinary bills in the thousands of pounds. If, therefore, you are thinking of taking out pet insurance to cover and illness or accident that your pet may suffer, this may not only be one of the wisest decisions you make on behalf of your pet, but could also be one of the most financially astute decisions you make. Read more

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